Online Trading

It's very tempting, and it sounds great - to be able to electronically trade
and make money every day trading from home or office.

But the truth about how electronic online trading is sold to the public is an ugly story.
No one you talk to about this will admit it!
No surprise there!

But you can always count on us to shed light on the truth behind the myth,
that will prevent you from disaster!

Brokerage firms decided to set up marketing companies that would offer
the ability to set up offices and make money by advertising that
you can now trade from their offices in your community and they would
make a small fee every time you execute a trade.

Most of the people that would operate offices know absolutely nothing about
trading and even less about economics.
They would hire some guy to teach the aspiring traders how to use the electronic trading system.
The guy teaching in most cases never even traded before in his life,
or had no experience trading and probably never even set foot
in a real trading department of a brokerage firm.

The result is a disastrous combination of the inexperienced, incompetent
managers and teachers instructing inexperienced aspiring traders!

The truth of the matter is that most people are not successful trading in this environment.
Not because online trading "doesn't work", but because they're not taught how to do it properly!

The people that are operating these offices expected it to be as simple
as running a coffee shop.
They had what I call a casino mentality!
They thought that all they had to do was open an office and people
would beat down their door to get in.
They didn't realize that if people lost money they would quit trading.
The owners of the offices were not equipped to continually train the traders
and offer support and on-going advice to insure the traders success.

See, in the beginning it was very simple.
While watching a screen, as soon as you saw offers fading
you would obtain an execution at the offer, then simply sell the stock
when it traded up a certain percentage.
That worked like shooting fish in a barrel
when there was only about 300 guys trading back in the early days.

Now you have 6000 or more guys trying to trade that last offer before the stock goes up!
Market makers are also very shrewd cats.
They know how to trade against the other traders and take advantage of their weaknesses
(which is immediately selling the stock they bought if it doesn't go up).

Now, really... Who is the idiot?
Remember, when you buy or sell, somebody is on the other side of the trade.
Do you really know more than this other person?

So how do you make money with electronic online trading?

It's still a wildly profitable way to make a living!
Offering you complete freedom to be your own boss and work on your own terms.

Though online investing isn't for everybody,
it can be a powerful tool for investors who are disciplined about research,
make carefully reasoned decisions and maintain a balanced portfolio.

If you are new to online investing,
don't put your entire life savings into an online account.
Start with a smaller sum, which will be easier to handle and keep track of.
Once you feel confident, you can then decide to add more money to your online account.

You really have to be extremely careful because the game has changed dramatically
and only a handful of traders have kept up with the changes!

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